Question & AnswerQ&A (Republic Act No. 2264)
The budget must appropriate an aggregate amount not exceeding the estimated tax receipts and/or income for the ensuing year, certified collectible by the Provincial Treasurer (provinces, municipalities, municipal districts) or City Treasurer (cities); provisions must be made for statutory and current contractual obligations; no salary should exceed maximum salary laws; and the budget must be approved by the appropriate local board or council and approved by the Mayor (for cities and municipalities).
The budget for the preceding fiscal year shall be deemed re-enacted and in effect until a new budget is enacted.
They have the power to review submitted budgets to ensure compliance with salary laws, contractual obligations, and estimated income limits. If violations are found, they can advise the treasurers to stop disbursement until corrections are made, or declare budgets inoperative and require adjustments.
LGUs may not levy residence tax, documentary stamp tax, taxes on newspaper business, taxes on operators of waterworks and certain public utilities, taxes on forest products, taxes on estates and inheritances, income taxes, vehicle registration and driver’s licenses taxes, customs duties and wharfage, taxes on banks and insurance companies, and taxes on premiums paid to foreign insurers, among others.
It takes effect on the fifteenth day after its passage unless otherwise provided.
The Secretary of Finance may suspend the effectivity of a tax ordinance within 120 days if deemed unjust, excessive, oppressive, or confiscatory. During suspension, the LGU may appeal to the courts, and taxes are considered paid under protest.
Provincial Boards may appropriate funds for general welfare, make loans or aid to municipalities, exercise eminent domain for public works projects, create barrios or sitios, change place names, and permit certain constructions under public service law conditions.
They may adopt zoning and subdivision ordinances and regulations for their respective territories, subject to the approval of the Mayor and may consult the National Planning Commission on planning and zoning matters.
They may purchase materials and supplies locally or elsewhere without going through the Bureau of Supply, but prices should not exceed Bureau of Supply maximum prices. Purchases involving scientific testing require prior analysis. Purchases are by public bidding unless the amount is below set thresholds (₱5,000 for provinces and cities, ₱1,000 for municipalities). Purchases must be certified for conformity before payment.
The vice-governor assumes the office for the unexpired term. If the governor-elect dies or fails to qualify, the vice-governor-elect assumes the office until the governor-elect qualifies.
In first to third class provinces, the board includes the governor (presiding officer), vice-governor, and three elected members at large. In fourth to seventh class provinces, the board includes the governor, vice-governor, and two elected members at large.
The vice-mayor assumes the office for a permanent vacancy. If incapacitated or refusing, the councilor with the highest votes assumes the office, followed by the next highest vote-getters if necessary.
Appointments become effective upon issuance and attestation by the appropriate treasurer (provincial or city treasurer). Temporary appointments to unclassified or emergency positions take effect immediately without attestation.
A member must be a qualified voter of the province, have been a bona fide resident for at least one year prior to election, and be at least 23 years old at the time of election.
The local board or council may appeal to the courts, and while the case is pending, the tax is considered paid under protest.